Platts - Tuesday, October 31, 2006 http://www.platts.com ------------ Global warming, energy security issues to dominate 21st century London (Platts)--31Oct2006 Global warming and energy security will likely be dominant issues of the 21st century, UK Energy Minister Malcolm Wicks told Euromoney's London conference on financing new nuclear construction October 30. He noted the same-day publication of economist Nicholas Stern's report warning that failure to reduce carbon dioxide emissions will lead to a catastrophic global recession. "The science is clear and alarming," Wicks said of the report, which was commissioned by UK Chancellor of the Exchequer Gordon Brown, but the economics of tackling global warming "do not need to be so alarming." He said "early action across the international arena, although enormously expensive, is affordable." Wicks underscored the interconnections between global warming and energy security, key reasons for the UK's energy review, which concluded in July that new nuclear power could help tackle both issues. New nuclear construction "could make a significant contribution," Wicks stressed. ------------ Areva denies giving up on its Chinese EPR bid London (Platts)--31Oct2006 Areva categorically denied it's given up on its Chinese EPR bid. A spokesman for the Franco-German vendor October 30 disputed reports in the French media last week that Areva had abandoned hope of being chosen over Westinghouse to supply four third-generation PWRs for construction at Sanmen and Yangjiang. The spokesman said Areva was "very satisfied" by the visit last week to China of French President Jacques Chirac. He said the Chinese leadership had "gotten the message" that Areva wants bilateral nuclear cooperation to encompass the entire fuel cycle, including reactor construction, and that it won't accept splitting the Generation III reactor order with Westinghouse. The Chinese have been seeking reprocessing technology support separately. Areva has agreed to extend its bid for the four EPR units until the end of the year, the spokesman said. The decision is in the hands of China's top leadership, he said. ------------ FPL still `very interested' in adding to nuclear portfolio Washington (Platts)--30Oct2006 FPL Group remains "very interested" in adding to its nuclear portfolio, Director of Investor Relations Jim von Riesemann said during an October 30 conference call with financial analysts. FPL acquired a majority stake in Duane Arnold earlier this year; its other nuclear plants are St. Lucie, Turkey Point and Seabrook. Last week FPL and Constellation Energy announced they were abandoning plans to merge. Constellation operates Calvert Cliffs, Ginna, and Nine Mile Point. FPL reported net income of $524 million for the just-completed quarter; the figure for third-quarter 2005 was $339 million. ------------ EDF's 1,300-MW PWRs cleared for 30 years' operation Paris (Platts)--27Oct2006 French regulators cleared Electricite de France's 1,300-MW PWRs for 30 years' operation, based on results of a safety review that began in 1997, the authority announced October 27. The generic authorization covers reactors at Belleville, Cattenom, Flamanville, Golfech, Nogent, Paluel, Penly and Saint Alban. In all, there are 20 of the standardized Framatome (now Areva NP) 1,300-MW units in two major models, P4 and P'4. The approval is conditioned on implementation of a list of safety-related backfits during the units' 20th-year outages, which began last year at Paluel-2 and will continue until 2014. With the backfits, the reactors will operate under an updated reference safety status that is valid through their third decade. ------------ NDA responsible for geologic disposal of higher activity wastes London (Platts)--27Oct2006 UK's NDA will be responsible for the geologic disposal of higher activity wastes, and Nirex will be subsumed into the NDA, the UK's Environment Secretary David Miliband announced October 25. The state-run cleanup body Nuclear Decommissioning Authority will replace Nirex, which has played an important role in developing the UK's knowledge on geological disposal, he said. Nirex would be allowed a short period to comment on the proposed ownership transfer "and how it could best be brought about," he said. Miliband said the key recommendations of the Committee on Radioactive Waste Management, or Corwm, published in July, had been accepted by the government. A new committee--with the same Corwm name but with a reconstituted membership--will be appointed to give advice on long-term radioactive waste management plans, he said. This would include considering the strategy and delivery plans and the site selection process. He said government was strongly supportive of Corwm's concept of "voluntarism" by local communities taking on the project. ------------ Areva loses hope for winning Chinese reactor bid Washington (Platts)--26Oct2006 Areva has abandoned hope of winning the Chinese advanced reactor bid, despite President Jacques Chirac's trip to China this week to promote French high technology, the French daily Liberation reported. The report echoed earlier statements from French officials that the large US trade deficit vis-a-vis China had tipped the balance in favor of Westinghouse's bid to build four AP1000s at Sanmen and Yangjiang and transfer the related technology. Areva had been hoping that its proposal for a vast partnership in civilian nuclear projects, including the fuel cycle where Areva has more scope than Westinghouse, would convince Chinese leaders to adopt the Franco-German firm's EPR model. ------------